Home » Bayesian Spatial-Propensity Score Matching Evaluation of the Regional Effects of Microfinance in Bolivia

A team of local researchers in Bolivia investigates whether, due to spillover effects, microcredit initiatives lift communities out of poverty and improve female empowerment. Using municipal-level census information and household survey data, the team developed a new method to compare municipalities with and without access to microfinance. The researchers find a significant reduction of unsatisfied basic needs poverty in municipalities with access to microfinance, as well as improved female empowerment through decision-making at the household level. Based on these results, the team makes several recommendations for the Bolivian Economic and Social Development Plan 2016-2020 and new Law of Financial Services No. 393, which aim to reduce poverty and promote Bolivia’s development. Find out more about the research methods, findings and policy recommendations in the following PEP publications: